Short Term Correction Pulls Ethereum by 6 Percent against U.S. Dollar in the Last 24 Hours

As per the reports from CCN, Ethereum has gone 6 percent against U.S. dollar in over 24 hours. After Ripple’s (XRP) up- thrust from $117 to $162, as a result of strong contending for 11 days from Dec 28; this short-term correction in Ethereum was expected in a way.

Before the 6 percent decline in the ETH, a crypto trader known as- ‘The Crypto Dog’ expressed that although at that time the cryptocurrency was enjoying a positive price raising graph, the challenge to close ahead of the critical resistance stage has the possibility to make the digital currency and assets sensitive to sell pressure both in shorts and increases. The trader said the following before the price dip of Ethereum-

“Maybe I just see what I want to see, but this chart is screaming to me ‘last chance to short ETH.” After the downturn of the prices, the trader said- “It makes sense to see some bounce here, given this level on the ratio, so I hesitate to say this is a great entry. […] and of course, I am just thinking out loud, not trying to urge anyone to FOMO into a trade. I shorted ETH at 156 dollars and sitting relatively comfy here.”

On the one hand, where most of the digital currencies have been struggling to give good performance over the last week, Ethereum showed quite a stable performance in the comparison to its competitor digital currencies. But since all the cryptocurrencies share an interdependent connection, it will be difficult for ETH to outperform rest of the digital currencies and assets despite its strong ongoing short term performance. There has been an increase in the valuation of the cryptocurrency market. It has added approximately 13 billion dollars and has moved from 125 billion dollars to 138 billion dollars, since 2nd January. Although recently the effect of short-term correction has also been noticed in the crypto market. Five billion dollars have been deleted off the cryptocurrency market. In the first three months of this year, it is predicted that there will be various catalysts that will support the crypto market. Regardless of the catalysts, it is anticipated that the majority of the cryptocurrencies will go through their last phase of the bear market. Some have predicted that the cryptocurrencies will take at least half of this year to see any recovery. They base their prediction on the turbulence shown by the ‘major digital assets in a low-price range,’ as reported by CCN.

On the other hand, other tokens by digital infrastructures such as Wanchain, Waltonchain, Ontology, Waves, and Chainlink have also seen a dip in their values. The prices have gone 5 percent lower suggesting a struggle to fight the effects of the bear market.

Factors such as- fluctuations in the major cryptocurrencies’ value, the dip in the daily volume of the market, and the increase in the selling pressure on the crypto assets, tend to have a bigger effect on the low market cap assets. Therefore, in case of Bitcoin goes any lower than 4000 dollars, the low market cap assets may see a deeper fall in their prices.

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